TL;DR
New AI Governance Guidelines in India will redefine liability, safety, and data practices in the automotive industry, focusing on ethical AI deployment in autonomous vehicles and ADAS, while also promoting sustainable manufacturing and talent development.
The Ministry of Electronics & IT has introduced new India AI Governance Guidelines, which are expected to profoundly impact the Indian automotive sector. Released on November 5, 2025, under the IndiaAI Mission, these guidelines aim to address the challenges of integrating AI into a rapidly evolving, software-driven and data-intensive automotive ecosystem.
The core of the policy is to ensure that AI systems, particularly in autonomous vehicles (AVs) and Advanced Driver-Assistance Systems (ADAS), deliver on promises of safety and efficiency without compromising human safety, accountability, or data privacy. The guidelines introduce 'Entity-Based' and 'Activity-Based' regulation across the automotive value chain, focusing on vehicle safety and liability, manufacturing efficiency, and ethical data ecosystems.
This regulatory framework also supports the broader digital transformation of the Indian automotive sector by pushing for AI to optimize energy consumption and resource usage in manufacturing, aligning with environmental goals. Furthermore, it aims to address the industry's shortage of AI experts by supporting capacity building through government-backed programs for reskilling the workforce and developing future talent in ADAS/AV safety and ethical deployment.
